Your firm has expertise with a special type of hand-finished furniture. The learning curve is known to be 82%. If the first piece of furniture took 6 hours, estimate (using the doubling approach) how long it will take to complete the third unit
What will be an ideal response?
Using the doubling approach, the second unit will take 0.82 ? 6 = 4.92 hours and the fourth unit will take 0.82 ? 0.82 ? 6 = 4.03 hours. The third unit must take an amount of labor between these two values, but not exactly halfway. There is more absolute improvement from unit 2 to unit 3 than from unit 3 to unit 4. A reasonable estimate would be about 4.4 or 4.5 hours (the answer from Excel OM is 4.38 hours).
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Clement Marine Stores Company manufactures special metallic materials and decorative fittings for luxury yachts that require highly skilled labor
Clement uses standard costs to prepare its flexible budget. For the first quarter of the year, direct materials and direct labor standards for one of their popular products were as follows: Direct materials: 4 pounds per unit; $4 per pound Direct labor: 4 hours per unit; $17 per hour Clement produced 5,000 units during the quarter. At the end of the quarter, an examination of the labor costs records showed that the company used 23,000 direct labor hours and actual total direct labor costs were $390,000. The direct labor efficiency variance was $51,000 U. Which of the following is a logical explanation for this variance? A) The company used more labor hours than allowed by the standards. B) The company paid a higher cost per hour for labor than allowed by the standards. C) The company used a higher quantity of direct materials than allowed by the standards. D) The company paid a higher cost for the direct materials than allowed by the standards.
The generic cognitive message strategy is a(n):
A) claim of superiority based on a product's specific attribute or benefit, which cannot be made by a competitor B) direct promotion of product attributes or benefits without any claim of superiority C) explicit, testable claim of uniqueness or superiority that can be supported or substantiated in some manner D) untestable claim based upon some attribute or benefit